Grandparent Raising Grandchild: Benefits Available in the UK

If you are a grandparent who has taken on a grandchild full-time, you are probably spending money you did not budget for — on a pension or wages that were already stretched. The benefit system does have real support available, but it is split across three different agencies and the amount you receive depends heavily on your legal arrangement, your age and where you live.

Here is the full picture for grandparents in England.

National Benefits (Available to All Grandparents)

These come from HMRC and DWP. You do not need a court order to claim any of them.

Child Benefit: £27.05 per week for the first grandchild, £17.90 for each additional child (2026/27). Claimed from HMRC. If the parent is still receiving it, you submit a new claim and HMRC investigates — the person the child lives with takes priority.

Universal Credit (if under State Pension age): Adds a child element of £303.94 per month per child to your UC award. If the child receives Disability Living Allowance, additional elements of £164.79 or £514.71 per month apply. If you provide 35+ hours of care for a disabled child, the Carer Element adds £209.34 per month.

Pension Credit (if over State Pension age): Adds a child amount of £69.98–£81.07 per week per child. Capital rules are more generous than UC — the first £10,000 is disregarded entirely, with no upper limit.

Guardian's Allowance: £22.95 per week if both parents have died or the surviving parent meets certain conditions. Tax-free and fully disregarded for UC and Pension Credit.

Council Payments (Depend on Your Legal Arrangement)

With a Special Guardianship Order: The council must assess you for an SGO allowance. This is means-tested — calculated from the local fostering rate, minus Child Benefit and the UC child element, then adjusted for your household income. Net payments vary widely between councils.

With a Child Arrangements Order: Discretionary. Some councils pay an allowance aligned with their SGO scheme (especially if the child was previously in care). Others pay nothing for CAO holders.

Without a court order: No automatic right to an ongoing council allowance. A carer in qualifying family court proceedings may still qualify for the Kinship Zone pilot if the child meets its "otherwise in care" threshold and the carer lives in a participating area. You can also request Section 17 help for immediate costs like beds, clothing and school equipment.

The Kinship Zone Pilot

If you live in Bexley, Bolton, Medway, Newcastle, North East Lincolnshire, Thurrock or Wiltshire and hold an SGO or a "lives with" CAO (or are in proceedings toward one), and the child meets the pilot's "otherwise in care" threshold, you may qualify for a non-means-tested weekly allowance matching the national minimum fostering rate — £176 to £267 per week depending on the child's age. This is fully disregarded for UC and tax-free.

Pension Protection

Grandparents under State Pension age who stop working to raise a grandchild risk losing qualifying years. Claiming Child Benefit for a child under 12 automatically gives you Class 3 NI credits. If you are not the Child Benefit claimant but regularly care for the grandchild, the parent who claims Child Benefit can transfer their NI credit to you using Form CA9176 (Specified Adult Childcare Credit).

Where to Start

The sequence matters. Claim Child Benefit first — it proves responsibility and unlocks NI credits. Then add the child to your UC or Pension Credit claim. Then pursue council support if you have or plan to get a court order.

Our kinship financial help guide sets out this sequence with the exact forms, deadlines and calculations for each payment, including how to challenge a council means test that seems wrong.

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